Table 9-1
Ringo Company Had the Following Information Relating to Net

question 99

Multiple Choice

Table 9-1
Ringo Company had the following information relating to net credit sales for 2019:
$$\begin{array} { | c | r | c | } \hline \text { Accounts receivable, Jan. 1, 2019 } & \$ 18,000 & \text { Dr. } \\\hline \text { Allowance for doubtful accounts, } & & \\\text { Dec. 31, 2019, prior to adjustment } & 600 & \mathrm { Cr } . \\\hline \text { Net credit sales during 2019 } & 95,000 & \\\hline \text { Collections on account during 2019 } & 87,000 & \\\hline \text { Cash sales during } 2019 & 27,000 & \\\hline\end{array}$$
-Referring to Table 9-1, if uncollectible accounts are determined by the percent-of-sales method to be 3% of net credit sales, the bad-debt expense for 2019 would be:

• A)$2,850.
• B)$3,450.
• C)$2,250.
• D)$600.

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed states, used as inputs to a production process for manufacturing finished goods.

Quality Control

A process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated.

Visual Inspection

The process of examining objects, components, or materials for defects using human sight, sometimes assisted by optical instruments.

Mass Production

A manufacturing process characterized by the high volume production of standardized goods using assembly line techniques.